Spanish stocks rose after Prime Minister Pedro Sanchez called early elections (PIERRE-PHILIPPE MARCOU)

London (AFP) – European stock markets advanced on Friday, with Madrid up half a percent after Spain’s Prime Minister called a snap election.

The dollar was up versus the euro, while Brent crude oil hit a 2019 high on tighter supplies caused by a dip in overall OPEC output and a crisis in cartel member Venezuela.

Brent North Sea reached $65.10 per barrel, the highest level for almost three months.

Asian equity markets earlier closed sharply lower as investors tracked US-China trade talks developments, while Wall Street was knocked Thursday by weak US retail sales.

In Spain, Prime Minister Pedro Sanchez on Friday called an early general election for April 28, the eurozone member’s third in less than four years, after his draft budget was rejected in parliament over the Catalan secession crisis.

Madrid’s IBEX 35 index was up 0.7 percent around midday.

London gained as stronger than expected UK retail sales offset Brexit anxiety.

“There is more political uncertainty in Europe as Spain will hold a snap election,” said David Madden, analyst at CMC Markets UK, one day after official data showed Europe’s biggest economy Germany just escaped recession.

Late Thursday, British MPs rejected a motion expressing support for Prime Minister Theresa May as she seeks changes to the Brexit deal ahead of the UK exit on March 29.

Consumers meanwhile appeared to shrug off Brexit uncertainty last month, with data Friday showing that British retail sales rose far more than expected in January. 

Elsewhere Friday, China’s state media reported President Xi Jinping as saying that his country’s trade talks with the United States would continue in Washington next week, 

“Next week the two sides will also meet in Washington,” Xi told top US and Chinese trade negotiators after two-days of talks wrapped up in Beijing, according to the official news agency Xinhua.

“I hope that you will continue to work hard to promote a mutually beneficial and win-win agreement,” he said.

It comes after top US trade negotiator Robert Lighthizer on Friday told Xi that “very difficult issues” remained.

“We have had two very good days of negotiations,” Lighthizer told Xi at the beginning of a meeting.

“We feel that we have to make headway on some very, very important and very difficult issues. We have additional work to do but we are hopeful,” Lighthizer said.

Top officials from the world’s two biggest economies held two days of talks hoping to make progress to stave off an escalation of their tariff war.

American and Chinese officials had gathered in a bid to resolve differences on trade before US President Donald Trump’s March 1 deadline for escalating tariffs on $200 billion of Chinese imports. 

– Key figures around 1115 GMT – 

London – FTSE 100: UP 0.5 percent at 7,229.38 points

Frankfurt – DAX 30: UP 0.8 percent at 11,173.56

Paris – CAC 40: UP 1.0 percent at 5,113.11

Madrid – IBEX 35: UP 0.7 percent at 9,013.50

EURO STOXX 50: UP 0.8 percent at 3,209.01

Tokyo – Nikkei 225: DOWN 1.1 percent at 20,900.63 points (close)

Hong Kong – Hang Seng: DOWN 1.9 percent at 27,900.84 (close)

Shanghai – Composite: DOWN 1.4 percent at 2,682.39 (close)

New York – Dow: DOWN 0.4 percent at 25,439.39 (close)

Euro/dollar: DOWN at $1.1274 from $1.1292 at 2200 GMT Thursday

Pound/dollar: UP at $1.2826 from $1.2795

Dollar/yen: DOWN at 110.44 yen from 110.69 yen

Oil – Brent Crude: UP 38 cents at $64.95 per barrel 

Oil – West Texas Intermediate: UP 34 cents at $54.75

burs-bcp/rfj/rl

Disclaimer: This story is published from a syndicated feed. Siliconeer does not assume any liability for the above story. Validity of the above story is for 7 Days from original date of publishing. Content copyright AFP.